Ooh Media’s share price slumps as it revises profit expectations to $125-135m

Ooh Media has downgraded its profit expectations for the 2019 calendar year to between $125m and $135m ahead of next week’s half-year financial report, a significant drop from its original guidance of between $152m and $162m. In response, its share price slid drastically on Friday, dropping from $4.04 to as low as $2.32 at 10:15am (AEST), a 40% plummet.

By 2:45pm, that figure climbed back up to $3.04, but the outdoor media company said quarter three took its toll on a business that relies on second-half results.

Quarter three was down 11-12%, and while quarter four is expected to improve, that improvement will be less than anticipated, and what CEO Brendon Cook described as a “disappointing turn of events” to investors in a conference call on Friday.

Cook noted that there has been a major reduction in roadside billboard bookings, driven by a drop in ad spend in the automotive and financial sectors. While Ooh has less visibility over quarter four’s results at this stage, Cook said that it is currently sitting at +6%, with a forecast of 13% growth at best and a 2% decline at worst.

“Deterioration in the market has been pronounced,” Cook noted, adding that August saw an “unprecedented decline”.

Ooh said that Commute, formerly known as Adshel, has been tracking as expected.

“The current general economic uncertainty and challenging market conditions makes predicting activity more difficult,” it said in an ASX statement.

Ooh Media’s half-year report will be released next week on 26 August.


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